Melbourne Housing Market
Data from the Australian Bureau of Statistics on new home loans being taken out by Victorians shows there has been a moderating demand from buyers – but these are predominately the young-family market and first home buyers.
After a lull in real estate sales due to the Easter and Anzac Day breaks, auction numbers are on the up again.
The Fairfax-owned Australian Property Monitors expects well over 1500 properties to go under the hammer in metropolitan Melbourne in the weeks ahead.
It would appear that the Melbourne housing market may be taking a breather with the strong rate of house price growth over the March quarter now levelling off.
Wakelin Property Advisory director Paul Nugent expects that sales in May will hold firm.
”The best time to sell Melbourne residential property is mid-to-late February through to early March,” he said. ”The market in May is normally predictable based on what has happened in March and April and we expect it to be consistent this year.”
APM senior economist Andrew Wilson said he expected new ABS loan figures due out in two weeks to indicate a softening in demand for housing finance.
APM house price data released last week showed the median house price in Melbourne rose by 2.8 per cent in the March quarter to $604,110 – the first time Melbourne’s median has exceeded $600,000.
But Dr Wilson said prices growth would moderate over winter. ”The trend in price growth is down from December to March, and it’s down in every capital,” he said.
However, Melbourne house prices have increased 11.7 per cent over the year ending March 2014, the best annual result since the year ending the September quarter 2010.
Buyer activity is expected to remain fairly solid over the coming months.